Japan’s political situation became chaotic almost gruel. Prime Minister Naoto Kan internal and external, attacked front and rear, that they can not calm down and consider the appreciation of the yen, stocks fell, economic recovery may be imminent mortality and other issues, fiscal reconstruction and long-term economic development strategy is on paper.

Japanese government and the Bank of Japan for yen, on August 30 introduced the basic principle of specific measures. However, public opinion holds that shot too slow Japan’s economic measures, the intensity is not enough, not many new ideas, so lukewarm market response, to no avail. Here are the reasons for misjudgment on the economic situation, but the impact of political chaos is one of the main factors.

Democratic Senate elections in July this year, after the failure of the ruling party’s seats in the Senate is not the majority, once again form a “twisted Diet” situation. Naoto Kan himself inappropriately in the elections due to the increase in consumption tax as the focus of debate, self-inductance of the failure can not shirk responsibility. Since then, he has been careful to say things, and nothing has changed compared to previous one, people do not know what to do next Kan Naoto, so support dropped. The delays on the appreciation of the yen shot, and Naoto Kan too careful not unrelated.

In addition, taking into account the introduction of economic measures, the first problem encountered is the lack of financial resources, to take major action to apply for a supplementary budget, but in the “twisted Congress” hard by, the Government can use the money only the 2010 annual budget reserve fund of 920 billion yen. Therefore, the Japanese government had introduced a number of virtual first eight brain to inhibit the appreciation of the yen has no direct role in the measures, such as the establishment of the “new strategy to achieve economic growth and promote the conference,”. Naoto Kan urged the Bank of Japan Shirakawa Fang Ming-line at this time to take action, but also for political considerations, because the Sept. 14 Democratic representative elections, foreign exchange intervention measures, if effective, can increase the weight for his re-election. Japanese analysts believe that truly care about economic issues, not political reasons from the economic measures proposed by fewer and fewer.

Currently, the Japanese generally believe that did not work because of economic stimulus measures, the Japanese government should also take further action, but on Sept. 14 before the election the Democratic Party, Naoto Kan, the main energy is engaged in the election, the political space in this time, no matter How the yen appreciation, are no longer possible new measures.

Japan’s long-term economic plan also affected by political turmoil. Naoto Kan took office, indeed ambitious, in June launched two ambitious economic plan, one designed to rebuild the financial medium term fiscal strategy, the other is the new economic growth strategy. However, the main component of the financial reconstruction is to increase the consumption tax, in the Senate election, Naoto Kan and false starts. Sharply divided opinion in the party, Ichiro Ozawa, the power to send people resolutely oppose the increase in consumption tax. After the failure of the Senate elections, the party Mr Kan Naoto accusation that Naoto Kan of people to increase consumption tax Zuoweizhenglun De focus, Mo, and Ren He who negotiate, was a mistake. Since then, Naoto Kan as much as possible in public, talk about this sensitive issue, difficult to implement medium-term fiscal strategy.

The only advantage of the Naoto Kan, the public opinion support Naoto Kan re-elected, because people do not want a year-for-3 Prime Minister of Japan; In addition, the existence of political contributions Ozawa question has not been clear, it may affect the local party members to vote Democratic However, a small proportion of the local vote, Ozawa, while not dominant, but not all lost.

If Ozawa wins, because of its opposition to increasing the consumption tax, to the Democratic Party firmly on the front of the stage to honor the commitments made to social security, Naoto Kan of the medium-term fiscal strategy will certainly be aborted. If Ozawa won when the prime minister, did not absorb the views of Ozawa’s new economic growth strategy may start all over again.

If Naoto Kan storm, re-elected representatives to the Prime Minister, Ozawa led the gang of horse does not rule out the possibility of secession, so it is inevitable restructuring of Japan’s political arena, Naoto Kan regime could not long exist, the development of long-term economic plan can not be performed.

The best is, no matter who wins, the Democratic Party did not split, remain in power either, but people have been disappointed with the Democratic Party, the writer away from Yoko August 31 in the “Asahi Shimbun” published an article, wrote: “political leadership”, ” attention to people’s livelihood “as a slogan was born in the Democratic Party government, set up last fall after the election did not fulfill the commitment in the House, the recently what are confused, and in September of each other exposing the ugly party elections, infighting internal friction, a waste of time, the National Democrats have a strong anxious sense of despair.

Civil strife in the Democratic Party, the LDP barely disguised pleasure, is waiting for an opportunity to seize power, but that can only mean a new political turmoil, means that Japan’s economy more and more decline in the political turmoil.

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